E-Rate for California Intermediate/Advanced Applicants

1. E-Rate for CaliforniaIntermediate/Advanced Applicants 1

2. E-Rate Acronyms BEN – Billed Entity Number CIPA – Children's Internet Protection Act FCDL – Funding Commitment Decision Letter FRN – Funding Request Number SPIN – Service Provider Identification Number SSD – Service Start Date RAL – Receipt Acknowledgement Letter (Form 471) RNL – Receipt Notification Letter (Form 470) NSLP – National School Lunch Program NIF – Non-Instructional Facility PIA – Program Integrity Assurance USAC Link: http://www.usac.org/sl/tools/reference-area.aspx BEN – Billed Entity Number CIPA – Children's Internet Protection Act FCDL – Funding Commitment Decision Letter FRN – Funding Request Number SPIN – Service Provider Identification Number SSD – Service Start Date RAL – Receipt Acknowledgement Letter (Form 471) RNL – Receipt Notification Letter (Form 470) NSLP – National School Lunch Program NIF – Non-Instructional Facility PIA – Program Integrity Assurance USAC Link: http://www.usac.org/sl/tools/reference-area.aspx

3. E-Rate Organization Federal Communications Commission (FCC), an independent U.S. government agency, oversees the E-rate program Universal Service Administrative Company (USAC), a not-for-profit, administers the E-rate program along with three other programs Schools and Libraries Division (SLD) is the part of USAC with responsibility for E-rate

4. E-Rate Rules The FCC sets rules and policies through orders Policies are defined in the text of orders USAC/SLD develops procedures for specific actions, such as how to process applications USAC submits its procedures to the FCC for approval each year

5. E-Rate Budget This cap will be adjusted for inflation starting in FY2010 Once each year, FCC can roll over unused funds from previous funding years into the current funding year

6. California Department of Education (CDE)& State Library Do Not Administerthe Federal E-Rate program. CDE & State Library have no statutory authority to administer the federal E-Rate program CDE & State Library only provide general information about the E-Rate program including: training and outreach, reference materials, and other publicly available SLD/USAC resources

7. E-Rate Cycle Funding Year is July 1 – June 30 Funding commitments are made by funding year (services starting on or after July 1 and ending on or before the following June 30) The Window Form 471 application window –Opens mid to late fall and closes February This year Funding Cycle July 1, 2011 to June 30, 2012 (AKA Funding Year 14 or FY 2011)

8. E-Rate Timeline: July 1st – June 30th *These dates are estimates. In order to derive the Form 470 deadline, applicants must count backwards from the Form 471 deadline. **FCC announces Form 471 filing deadlines each Fall.

9. 6th Report and Order Overview

10. Dark Fiber now eligible from any provider Makes permanent after hours, onsite community use Indexes funding cap to inflation Pilot program for schools providing wireless offsite access Technology Plans only for P2 More on competitive bidding, including gifts Changes to ESL – “Unbundled warranties” ineligible Disposal of Equipment and SPIN changes What’s Included? Overview

11. Lease of fiber, lit or dark, is eligible in Telecom or Internet Access from any provider (dark fiber must be lit immediately) Providers can be telcos; state, regional or research and educations networks; or private networks * See Eligible Services discussion for further details. Dark Fiber Access to Broadband

12. After school hours, schools may open their facilities to the general public to use E-rate supported services Schools decide whether or not to provide such access Service must primarily be for educational purposes Schools cannot purchase additional services to support community use Community use is limited to non-operating hours and only on campus Schools may not charge for use of services or facilities purchased through E-rate though they may charge a fee to offset ineligible costs (e.g. security, additional electricity, etc.) Community Use of Schools’ E-rated Services Improving Broadband Access

13. Funding has been capped at $2.25B since 1999 Cap will not decrease in event of deflation FCC will announce the increase annually For FY 2010, inflation is deemed 0.9% New cap for FY 2010: $2,272,500,000 This increase is in addition to any rollover funds Indexing the Funding Cap to Inflation Improving Broadband Access

14. Pilot allows $10M in FY 2011 to support innovative and interactive off-premise wireless device connectivity for schools and libraries. FCC will use the pilot to gather more information about issues affecting such use which can later be used for permanent rules. FCC expects data reporting by those selected Strong preference given to those already implementing such programs E-rate Deployed Ubiquitously (EDU) 2011 Pilot Program Improving Broadband Access

15. New requirements apply for FY 2011 and beyond No longer required for: Priority One (Telecom and Internet Access) Still required for: Priority Two services (internal connections and Basic Maintenance of Internal Connections) There may be other reasons to continue to have a current technology plan *See Tech Plans slides later in presentation for more details on subject. Technology Plans Streamlining & Simplifying

16. Disposal or resale is permitted no sooner than five years after installation date Applicants may receive payment or other consideration in return for disposal Applicants are not required to use equipment for five years, nor are they required to dispose of equipment after five years. No notification to USAC is needed, but update your asset registers This does not change the requirement to report transfers of equipment made less than three years from purchase Disposal of Equipment Streamlining & Simplifying

17. Form 470 All must continue to use the Form 470 process New, streamlined Form 470 will be available for use for FY 2011 New form is approved by OMB and awaiting online implementation Applicants that file Forms 470 prior to effective date do not need to refile Applicants that file Form 470 after the effective date MUST use the new form Competitive Bidding Process Streamlining & Simplifying

18. New Order codifies* that competitive bidding process must be fair and open. All potential bidders must have access to the same information and must be treated in the same manner throughout the procurement process Additions or modifications to the Form 470/RFP must be made available at the same time and in a uniform manner to all potential bidders *Codification makes this a rule, subject to violation, as opposed to merely a guideline Fair and Open Competitive Bidding Rule Streamlining & Simplifying

19. Rule violations include (but are not limited to): Applicant has relationship with the service provider that unfairly influences the outcome of the competition or provides them with “inside” information Someone other than the applicant (or their representative) prepares, signs and submits the Form 470 Service provider is listed as the contact on the Form 470 and the provider is allowed to bid Fair and Open Competitive Bidding Rule Streamlining & Simplifying

20. Codification of the Gifts Rules Receipt of gifts by applicants from service providers and potential service providers is a competitive bidding violation. Exceptions mirror Federal Government regulations Modest refreshments not offered as part of a meal (e.g. coffee and donuts at a meeting) are OK Items with little or no intrinsic value such as certificates and plaques are OK Fair and Open Competitive Bidding Rule Streamlining & Simplifying

21. Gifts Exceptions: Items worth $20 or less (meals, pencils, pens, hats, t-shirts etc) as long as those items do not exceed $50 per year per employeefrom any one source (service provider) are OK. This means all gifts from all employees, officers, representatives, agents, independent contractors, or directors of the service provider (including manufacturers). Fair and Open Competitive Bidding Rule Streamlining & Simplifying

22. Gifts Gift prohibitions are always applicable, not just during the competitive bidding process Prohibition includes soliciting and receiving any gift or other thing of value from a service provider participating in or seeking to participate in the E-rate program. Service providers may not offer or provide any gifts to applicant personnel involved in E-rate Fair and Open Competitive Bidding Rule Streamlining & Simplifying

23. Gifts Gift rules are not intended to discourage companies from making charitable contributions to schools, as long as those contributions are NOT directly or indirectly related to an E-rate related procurement. *Effective…NOW Fair and Open Competitive Bidding Rule Streamlining & Simplifying

24. Pre-commitment SPIN changes Corrective SPIN changes only (i.e.. data entry errors) Post-commitment SPIN changes Operational SPIN changes Must have legitimate reason to change, such as Breach of Contract or provider unable to perform and Must select provider with next highest point value in evaluation SPIN Changes Streamlining & Simplifying

25. E-Rate Technology Planning

26. Recent Changes to E-rate Technology Plan Requirements Beginning in FY2011, Tech plans are required for Priority 2 services ONLY (internal connections and basic maintenance of internal connections) The budget requirement for the Tech plans has been eliminated

27. Technology Plan Overview FFC rules require an “approved” technology plan when receiving E-rate discounts for priority 2 services (internal connections: switches, routers, cabling and basic maintenance) Find your public charter, district or COE Tech Plan status at: http://www.cde.ca.gov/ls/et/rs/techplan.asp *Decision: Decide which tech plan to use: A) E-rate only, B) EETT technology plan (best practice approach because it also qualifies applicant for K12 Microsoft voucher funding) Note: Libraries leverage your master plan in developing your technology plan. Tech Plan must be “written” prior to posting Form 470 for priority 2 services. DOCUMENT the existence of this “Written Plan” – i.e., Letter/E-mail from Cabinet, screen print of file name and date, and physical copy of plan. Must cover all 12 months of the funding year (July 1 – June 30). E-rate only plans should not cover more than 3 years; EETT tech plans that meet E-rate requirements can cover 5 years with progress review during 3rd year. Tech plans must include any priority 2 services for which E-rate discounts are sought. 9 Must be approved by a “Certified Technology Plan Approver” See the Technology Plan approver locator tool on the USAC website: http://www.sl.universalservice.org/reference/tech/default.asp 10. Use the technology plan builder and the expertise of your CTAP regional assistance: http://myctap.org/index.php/techplan/tpb

28. 4 Required Elements of a Technology Plan Used for E-rate Clear statement of goals and realistic strategy for using telecommunications and information technology to improve education or library services. Professional Development strategy to ensure staff understands how to use technologies to improve education or library services Needs Assessment of telecommunication services, hardware, software, and other services that will be needed to improve education/library services Evaluation process to monitor progress towards goals and allows for mid-course corrections in response to new developments as they arise. 28

29. The “Two Tech Plans” E-Rate Only Plan: Goals Professional Development Needs Assessment Evaluation Process Tech Plan Help www.usac.org/sl/ applicants/step02/ • Enhancing Education Through Technology (EETT): • Executive Summary/Introduction • Stakeholders • Curriculum • Professional Development • Infrastructure • Adult literacy • Research • Funding and Budget • Monitoring and Evaluation • www.cde.ca.gov/ls/et/rs/techplan.asp

30. CTAP Tech Plan Builder Tool

31. EETT Tech Plan Cycle Dates: The final dates to submit your EETT Tech Plan for approval are: Cycle A: September 17, 2010 Cycle B: November 19, 2010 Cycle C: March 11, 2011

32. Under what circumstances do you revise or amend tech plan? Tech plans should be reviewed every year for relevancy as technology and situations change (before filing form 470) EETT tech plans (5 yr. life) used for E-rate require a “progress review” at year three (must document this) If annual review finds major changes: major budget cutbacks (close schools); adding a new technology program (distance learning); or add new technology (internet service) – should revise entire plan Major or significant changes require a new tech plan and approval to incorporate these significant changes Bottom line – the tech plan should support E-rate services requested on form 470 and contracted for on form 471 Minor changes add addendum to the tech plan file (does not require re-approval) – E.G Changing of hardware standards, etc. 32

33. Technology Plan “Gotchas” Service Providers may notact as technology plan approvers, write/create, or assist in the tech plan in any capacity Education Service Agencies (ESA’s) or County Offices (COEs) that act as service providers and applicants – must build appropriate “firewalls” between roles, see USAC guidance: http://www.usac.org/sl/applicants/step01/esa-guidelines/ Same staff should not work in both roles Provide functional/organizational separation within organization

34. Technology Plan “Must Do” Reminders: Must be “Written” prior to posting Form 470 for priority 2 services: It must be documented that it is written before the posting of the form 470! (Applicant must document the existence of this plan, i.e., e-mail with plan attached, memo from cabinet level about the plan being written, including the date. “DATE STAMP,” submit EETT tech plans during cycle A [final date November 19, 2010]) Must include a sufficient level of detail and cover all priority 2 services for which E-Rate discounts are being sought on the Form 470(s) and subsequent Form 471(s). Must be approved by the start of services (July 1) or the filing of Form 486, whichever is earlier for priority 2 services E-rate only plans must be approved by a “USAC Certified Technology Plan Approver” see USAC link: http://www.usac.org/sl/tools/reference/tech/default.asp Combination E-rate/EETT Tech plans must be submitted to your CTAP region for approval: http://www.cde.ca.gov/ls/et/rs/ctapcoordinators.asp Must include all four required elements regardless of the type of plan being used (E-rate only or EETT)

35. Technology Plan Help E-rate Plans: John Vardanega, jvardane@cde.ca.gov, 916-323-2241 EETT Plans: Doris Stephen, dstephen@cde.ca.gov 916-324-9943 CTAP:http://www.cde.ca.gov/ls/et/rs/ctapcoordinators.asp CTAP Tech Plan Builder: http://myctap.org/index.php/techplan/tpb Libraries: Rushton Brandis, rushbrandis@library.ca.gov , 916-653-5471

36. Eligible Services Overview

37. Priority One – Telecommunications Services Overview • Support for telecom services • Examples: • Local and Long Distance service • Cellular Service • Text messaging • Ethernet

38. Priority One – Telecommunications Services Overview • Other examples of eligible telecom services • T-1, T-3 • DSL • PRI • Satellite service • Interconnected Voice over Internet Protocol (VoIP) • Taxes and fees • Installation and configuration

39. Priority One – Telecommunications Services Overview • Some examples of services NOT eligible: • Broadcast “Blast” messaging • Monitoring services for 911, E911 or alarm telephone lines • Services to ineligible locations • End-user devices

40. Priority One - Telecommunications Overview • Telecommunications Services and Telecommunications are now two categories on the Eligible Services List (ESL) • Telecommunications Services can only be provided by an eligible telecommunications carrier • On Form 470/471 as Telecommunications Services • Telecommunications {only} can be provided by non-telecommunications carriers via fiber in whole or in part • On Form 470/471 as Telecom or Internet Access

41. Priority One – Internet Access Overview • Support for Internet Access includes the Internet Service Provider (ISP) fees and the conduit to the Internet • Examples also include: • E-mail Service • Wireless Internet Access • Web Hosting • VoIP

42. Priority One – Internet Access Overview • Some examples of services NOT eligible: • Costs for Internet Content • Subscription services such as monthly charges for on-line magazine subscriptions • Internet2 membership dues • Web site creation fees • Software, services, or systems used to create or edit Internet content

43. Priority Two – Internal Connections Overview • Support for equipment and cabling on-site that transport information to classrooms or public rooms of a library • Does NOT include end-user components such as computers • Subject to the Two-in-Five Rule • Entities can only receive funding every two out of five years

44. Priority Two -Internal Connections Overview

45. Priority Two -Internal Connections Overview

46. Priority Two – Basic Maintenance of Internal Connections Overview • Support for basic maintenance of eligible internal connections • Examples: • Repair and upkeep of eligible hardware • Wire and cable maintenance • Basic technical support • Configuration changes

47. Priority Two – Basic Maintenance of Internal Connections Overview Agreements or contracts must state the eligible components covered, make, model and location Service must be delivered within the July 1st to June 30th timeframe Two-in-Five Rule does not apply to BMIC

48. Eligible Services What’s New

49. Leased Dark Fiber for FY 2011 What’s New Leased Dark Fiber included as Telecommunications on the FY2011 Eligible Services List Support for the lease of fiber, whether lit or dark, as a priority one service, from any entity On the FCC Form 471, applicants should select the Telecom box if the leased fiber is provided by a telecom carrier In all other cases, the applicant should select the Internet Access box

50. Leased Dark Fiber for FY 2011 What’s New • Dark fiber must be lit immediately • Does NOT allow for unneeded capacity or warehouse dark fiber for future use • Maintenance costs of dark fiber and installation costs to hook up the dark fiber are eligible • This includes charges for installation within the property line • The purchase or lease of modulating electronics in Priority One is NOT eligible